Ice Miller attorneys offer helpful information on the financing alternatives available to Illinois Cities and Villages pursuant to Illinois law and consideration to federal tax and securities laws. Learn how we can help through our guide, “Financing Options: Using Bonds for Illinois Cities and Villages
.” An excerpt follows:
What is a Bond and Why Would a City or Village Want to Issue a Bond?
Bonds are a form of debt. In the public sector, “borrowers” or “issuers” of bonds are states, cities, villages and other local government entities that need money for a variety of reasons. Typically, a borrower will want to issue a bond and pay principal and interest over time to spread out the burden of paying for public infrastructure over the period of expected useful life of the financed assets, as opposed to increasing taxes or impacting their budget over a shorter term. Borrowing by a city or village is highly restricted and must be done in accordance with Illinois law.